• Figure out how much you can afford
• Shop for a Home
• Make an Offer
• Get a Home Inspection
• Apply for a FHA Loan
• Sign Papers
• Calculate Funds needed at Settlement
  

REFINANCE OPTIONS
Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset but are now in default-to qualify for refinancing, giving a second chance with a FHA insured loan product.

In addition, FHA will implement risk-based premiums that match the borrower's credit profile with the insurance premium they pay (riskier borrowers pay more). This common-sense, risk-based pricing structure will begin on January 1, 2008.  The combination of FHASecure and risk-based premium pricing will permit FHA to return to the role it was originally designed to play, bringing stability to the real estate market by helping break today's cycle of foreclosures and price depreciation and creating much needed liquidity in the now-constricted mortgage market.


FHA insures mortgages on single family, multifamily and manufactured homes. It is the largest government backed mortgage insurer.


To qualify for FHASecure, eligible homeowners must meet the following five criteria:
1.    A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset
2.    Interest rates must have or will reset between June 2005 and December 2008
3.    Three percent cash or equity in the home
4.    A sustained history of employment; and
5.    Sufficient income to make the mortgage payment.

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.